Tax-Exempt Healthcare Systems: Taking a Fresh Look at UBI Expense Allocation

Recently, the IRS has stepped up its efforts to challenge unrelated business income expenses that tax-exempt healthcare systems report on Form 990-T. This article provides guidance on how these organizations might adjust their Form 990-T tax reporting or – at a minimum – prepare for increased IRS scrutiny of tax reporting methods by verifying that their methods are current, understandable, and defensible.